Ace,IncHad the Following Transactions During June: Performed Services for $5,000

question 36

Multiple Choice

Ace,Inc.had the following transactions during June: Performed services for $5,000 on account; received cash on account,$7,000; paid $600 for repair expense; paid $2,000 to a supplier that it owed from the previous month.What is the combined effect on Cash of the June transactions?

• A)$4,400 increase
• B)$4,400 decrease
• C)$7,000 increase
• D)$2,600 decrease

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Definitions:

Prima Facie Duty

A duty that is apparent and obligatory until proven otherwise, often used in ethical discussions to describe actions that appear morally necessary at first glance.

Sentient Being

An entity that has the capacity to experience feelings and sensations, such as pain and pleasure.

Well-Being

A state of comfort, health, or happiness that individuals or groups experience.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity, as defined by the World Health Organization.